S3565-2011 Actions

• Jan 4, 2012: REFERRED TO LABOR
• Feb 25, 2011: REFERRED TO LABOR

S3565-2011 Memo

BILL NUMBER:S3565

TITLE OF BILL:

An act
to amend the workers' compensation law, in relation to directing the
state insurance fund to offer title insurance or certificates of clear
title

PURPOSE OR GENERAL IDEA OF BILL:

It directs the state insurance fund to offer title insurance and
authorizes the superintendent of insurance to implement.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 76 of The
workers' compensation law is amended to add a new
subdivision 6.

�2: The superintendent of insurance is directed to create, within the
insurance department, a title insurance bureau which shall implement
the title insurance program.

JUSTIFICATION:

Like other forms of insurance, title insurance, which guarantees
homebuyers against claims of prior liens against property they intend
to purchase, is regulated by New York State. Currently, title
insurance is available through only private entities and costs
citizens, on average, $1.2 billion, in order to guarantee payments of
$50 million, according to 2007 statistics. Because title insurance is
a requirement of home purchase, citizen are forced to pay accept the
prices set by private industry, but that require the approval of the
New York State Insurance Department. New York State should take a
greater interest in protecting citizens from the overpricing of
something the state requires of home buyers. For example, the State
of Iowa has prohibited the private sale of title insurance, allowing
the government to set rates and ensure that its citizens are offered
standard price. Reform of the current New York State system could
preserve the legal and social benefits of guaranteed title while
saving New Yorkers hundreds of millions of dollars annually.

PRIOR LEGISLATIVE HISTORY:

2010: A.9441/S.6288 - Held in Labor.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

S3565-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         3565
 2011-2012 Regular Sessions
 I N  SENATE
 February 25, 2011
 
 Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
 printed to be committed to the Committee on Labor
 

AN ACT to amend the workers' compensation law, in relation to  directing
 the  state  insurance fund to offer title insurance or certificates of
 clear title
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. 

Section 76 of the workers' compensation law is amended by
 adding a new subdivision 6 to read as follows:

 6. THE PURPOSES OF THE STATE INSURANCE FUND CREATED  IN  THIS  SECTION
 ARE HEREBY ENLARGED TO PERMIT IT TO FURNISH TITLE INSURANCE POLICIES, AS
 DEFINED  IN  SUBSECTION  (B) OF SECTION SIX THOUSAND FOUR HUNDRED ONE OF
 THE INSURANCE LAW, AND/OR CERTIFICATES OF CLEAR TITLE. A  SEPARATE  FUND
 IS  HEREBY CREATED WITHIN THE STATE INSURANCE FUND, WHICH SHALL BE KNOWN
 AS THE "TITLE INSURANCE FUND", AND WHICH SHALL CONSIST OF  ALL  PREMIUMS
 RECEIVED AND PAID INTO SAID FUND ON ACCOUNT OF SUCH INSURANCE, ALL SECU
 RITIES  ACQUIRED BY AND THROUGH THE USE OF MONEYS BELONGING TO SAID FUND
 AND OF INTEREST EARNED UPON MONEYS BELONGING TO SAID FUND AND  DEPOSITED
 OR  INVESTED  AS  HEREIN  PROVIDED.  SAID  TITLE INSURANCE FUND SHALL BE
 APPLICABLE TO THE PAYMENTS, EXPENSES AND ASSESSMENTS ON ACCOUNT OF TITLE
 INSURANCE POLICIES WRITTEN PURSUANT TO THE RULES AND REGULATIONS  ESTAB
 LISHED BY THE SUPERINTENDENT OF INSURANCE.
 

S 2. The superintendent of insurance is hereby:

 1. directed to create, within the insurance department, a title insur
 ance  bureau  which  shall  implement the title insurance program estab
 lished by this act; and
 2. authorized to prescribe, amend and withdraw rules  and  regulations
 implementing  the provisions of subdivision 6 of section 76 of the work
 ers' compensation law, as added by section one of this act.
 

S 3. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05045-01-1

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